In Germany, startups dealing with artificial intelligence (AI) are currently experiencing a boom. Despite the overall slowdown, the number of young companies specializing in AI increased by two-thirds in 2023, to a total of 341, according to a survey by Hubraum and the German Start-up Association. This is what Manager magazine reports.

More investments in AI startups in Germany

Investors are also showing growing interest in this advanced technology. In the years 2021 to 2023, the volume of funding for AI startups increased almost fivefold, to a remarkable €22.3 billion. At the same time, however, the overall investment volume of German startups fell by 57 percent.

Many startups are turning to generative AI (GenAI), which is capable of creating content based on a few keywords. “A fifth of the founders surveyed aspire to a valuation in the billions,” Manager Magazin quotes displacement director Axel Menneking. However, he also stresses that success is not a given. Intensified cooperation between startups and the rest of the economy is needed, as is better access to technological infrastructure.

The United States is a pioneer in GenAI

Despite strong growth, Germany lags behind in international comparison. According to the study authors, twelve times more capital per capita is invested in GenAI startups in the US than in Germany. Therefore, two-thirds of the founders surveyed expect the United States to take the lead in this technology in the long term.

“We urgently need to mobilize more capital,” demands Nicole Büttner, vice president of the start-up association at Manager Magazin. She sees the federal government's growth fund as a positive step in this direction.

Get informed, understand, make the right decisionsHere you can get general information about current financial news. Every Friday as a newsletter.

*Fields marked with an * are required